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German Paper Maker Mercer International (MERC,$MERC) Helps ValuEngine Long Portfolio Double the SP500 since Re-Balance

|Includes: Mercer International Inc. (MERC)

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April 6, 2011
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Paper Chase

German Paper Maker Mercer International (MERC,$MERC) Helps ValuEngine Long Portfolio Double the SP500 since Re-Balance

 Mercer International Inc (NASDAQ:MERC). owns and operates a diverse pulp and paper business in the southern German states of
Saxony and Thuringia, in the former East Germany. The Company operates it's pulp business primarily through its subsidiaries, Spezialpapierfabrik Blankenstein GmbH and Zellstof-und Papierfabrik Rosenthal GmbH & Co. KG , and conducts its paper business through another subsidiary, Dresden Papier GmbH.

 Mercer International Inc. was selected as the Basic Materials Sector pick for our ValuEngine Forecast Model Market Neutral Portfolio Newsletter on March 17th. Since that recent re-balance, the stock is up @20% and currently sits in fourth place among the 32 equities in this month's portfolio.  Our longs are led by GSI Commerce (NASDAQ:GSIC)--which is up more than 56% pending an acquisition by Ebay, and Mercer International Inc. is neck and neck with other big gainers Revlon (NYSE:REV) and Manitowac (NYSE:MTW).  AS of today, our long-side is doubling the return of the SP 500 since the re-balance 

Please Click Here for more on the VE Forecast 16 MNS Portfolio Newsletter.

  ValuEngine has issued a BUY recommendation for Mercer International Inc. on Apr. 06, 2011. Based on the information we have gathered and our resulting research, we feel that Mercer International Inc. has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE momentum, P/E ratio and price/sales ratio.

  Based on available data as of Apr. 06, 2011, we believe that MERC should be trading at $12.19. This makes MERC 22.09% overvalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For MERC, we base this on actual earnings per share (NYSEARCA:EPS) for the previous four quarters of $2.90, forecasted EPS for the next four quarters of $2.00, and correlations to the 30- year Treasury bond yield of 4.51%.

 Subscribers can check out the latest figures on Mercer International Inc. from our models HERE.  


Market Indices Data
  Latest Change YTD
Dow Jones
12,408.50 14.57 7.18%
NASDAQ Composite
2,791.63 0.44 5.23%
Russell 2000
852.17 -1.14 8.74%
S&P 500
1,332.71 0.08 5.97%

 

ValuEngine Market Overview
Summary of VE Stock Universe
Stocks Undervalued
37.51%
Stocks Overvalued
62.49%
Stocks Undervalued by 20%
15.76%
Stocks Overvalued by 20%
28.81%
ValuEngine Sector Overview
Sector Change MTD YTD Valuation Last 12-MReturn P/E Ratio
Oils-Energy -0.22% -0.09% 13.27% 23.85% overvalued 42.19% 49.07
Multi-Sector Conglomerates -0.39% 0.17% 5.41% 16.58% overvalued 26.66% 30.33
Transportation -0.69% -0.17% 1.48% 14.66% overvalued 20.69% 22.13
Basic Materials 1.77% 2.82% 3.89% 14.08% overvalued 52.69% 26.17
Industrial Products 0.24% 0.53% 8.37% 11.96% overvalued 26.80% 30.86
Utilities -0.12% 0.23% 5.14% 11.40% overvalued 16.28% 21.75
Aerospace -0.15% -0.08% 16.25% 11.30% overvalued 21.86% 19.87
Business Services -0.10% -0.01% 5.74% 10.48% overvalued 15.06% 51.66
Consumer Staples -0.29% 0.12% 0.17% 9.57% overvalued 14.80% 19.16
Construction 0.22% 0.03% 2.63% 9.49% overvalued 9.74% 35.29
Auto-Tires-Trucks -0.38% -0.23% -2.19% 8.92% overvalued 36.32% 20.88
Computer and Technology 0.33% 0.55% 12.73% 8.13% overvalued 30.12% 45.83
Finance -0.12% 0.02% 3.69% 7.95% overvalued 8.25% 26.08
Retail-Wholesale 0.66% 0.76% 6.25% 7.46% overvalued 18.66% 29.24
Consumer Discretionary 0.35% 0.66% 6.06% 5.46% overvalued 16.01% 33.17
Medical 0.18% 0.69% 13.33% 3.11% overvalued 14.07% 38.16

 

 

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